Calculating Cost for Actual or Average Makeable Items

For makeable items using actual or average cost profiles, the Transaction Costing process (within the Cost Accounting Creation process) processes according to the production ID. After the production ID has been closed for accounting, the Transaction Costing process finishes debiting the unposted transactions and calculates the actual cost of the assembly items. Then, the process clears WIP to finished goods for all cost books. Finished goods receives the completed items. They are posted to the TRANSACTION_INV record or directed to another production ID. The Transaction Costing process gathers the actual costs that have been recorded and posts the costs to the CE_ACTUAL_COST table. Then, the Transaction Costing process posts the manufacturing costs from the CE_ACTUAL_COST table to the CM_ACTUAL_COST table.

If the production ID is not costed by the Transaction Costing process, the transaction displays on the Pending Transactions page under the Pending Calculation Prdn Cost. If an item is not costed, simply enter the necessary corrections to the production data and the item will be costed on the next run of the process. There are a number or reasons that the Transaction Costing process may not pick up a production ID that has been closed for accounting, including:

• The Transaction Costing process was not run for the business unit and cost book with the Calculate Actual Prdn Costs check box selected.

• For direct labor costs, no actual labor rates are set up for the business unit when the make item's Cost Profile has a labor cost method of Actual Time-Crew Rate.

• For direct labor costs, no conversion rates exist for the business unit when the make item's Cost Profile has a labor cost method of Actual Time-Conversion Rate.

• For direct labor costs, either no routing times or no conversion rates are defined for the business unit when the make item's Cost Profile has a labor cost method of Standard Time-Conversion Rate.

• For direct labor costs, no default cost version is active for the business unit when the make item's Cost Profile has a labor cost method of Standard Time-Conversion Rate.

• For direct machine costs, no conversion rates exist for the business unit when the make item's Cost Profile has a machine cost method of Actual Time-Conversion Rate.

• For direct machine costs, either no routing times or no conversion rates are defined for the business unit when the make item's Cost Profile has a machine cost method of Standard Time-Conversion Rate.

• For direct machine costs, no default cost version is active for the business unit when the make item's Cost Profile has a labor cost method of Standard Time-Conversion Rate.

• For overhead costs, no production overhead codes were defined.

• For overhead costs or direct materials, no default cost version is active for the business unit.

• For direct materials, the production ID has rows stuck in CM_DEPLETION or CM_DEPLETE.

• For direct materials, insufficient quantity exists to satisfy the depletion.

• For direct materials, an adjustment has been posted since the last time the Transaction Costing process has been run and the process must be run again for this production ID.

• The production ID has uncosted rows in CE_ACTUAL_COST, due to:

  • A lower level production ID with unfinished costing. The lower level production ID has the Hold for Final Cost check box selected the cost profile and the Transaction Costing process was run in mid-period mode.

  • A current level open production ID that has the Hold for Final Cost check box selected the cost profile and the Transaction Costing process was run in mid-period mode.

  • The production ID has rows stuck in CM_DEPLETION or CM_DEPLETE.

  • The production ID is not defined for actual or average costing.